Beauty prepayment losses hit S$1.9m in first half of 2026, nearly 18 times higher than a year ago: CASE

Consumer complaints in the beauty industry surged dramatically in the first half of 2026, reaching over $1.9 million in prepayment losses, a figure nearly 18 times higher than the $108,000 recorded in the same period in 2025, according to the Consumers Association of Singapore (CASE). This marks a significant shift, as the beauty sector has now surpassed the motorcar industry, which previously led in complaint numbers during the first half of 2025. The surge in complaints and financial losses is attributed primarily to the sudden closure of multiple beauty and wellness businesses, leaving many customers with unpaid services and substantial financial setbacks. Between January and June 2026, CASE received 1,124 complaints against the beauty industry, more than double the 558 filed in the same period the previous year. These figures reflect a broader trend of rising consumer grievances, with overall complaints increasing by 6.9 percent to 6,684, compared to 6,253 in the first half of 2025. The top five industries generating the highest number of complaints remained consistent, though the order shifted slightly. While the motorcar industry still ranks high, the travel sector climbed into the top five for the first time since early 2022, driven by a steep 76.4 percent increase in complaints, rising from 246 to 434. Among the beauty-related complaints, nearly 40 percent were linked to businesses failing to meet contractual obligations, often resulting from unexpected closures. One notable case involves the sudden shutdown of Royal Secrets Wellness, which left customers with over $1 million in unclaimed prepayments. A single customer reportedly lost around $50,000 in such instances. Similarly, the closure of Wan Yang Health Product and Foot Reflexology Centre resulted in over $137,000 in unutilized prepaid packages. These incidents highlight the growing risk associated with large upfront payments for beauty treatments and wellness services. In addition to payment disputes, other common concerns included allegations of unethical sales practices, which accounted for 15.3 percent of all complaints, and delayed or denied refunds, affecting 13.8 percent of complainants. CASE President Melvin Yong emphasized the need for caution, urging consumers to avoid large advance payments and instead opt for payment plans that allow for more flexibility. He called for stronger regulatory measures to safeguard consumers' interests, stating that “consumers should avoid making large advance payments where possible and consider paying per use or in smaller instalments.” Meanwhile, the travel industry also experienced a sharp uptick in complaints, with a 76.4 percent increase in reports to 434. This growth was largely fueled by a dramatic rise in issues related to online travel agents, which saw a 148.9 percent jump in complaints, from 139 to 346. Most of these complaints centered on delayed, refused, or withheld refunds, accounting for 39.3 percent of the total. The airline industry also reported an increase, with 192 complaints logged in the first six months of 2026, representing a 19.3 percent rise from the previous year. CASE attributed this surge to ongoing geopolitical tensions and frequent changes to flight schedules, which have heightened the chances of travel disruptions and service failures. As the beauty and travel sectors continue to face mounting consumer concerns, CASE has urged individuals to scrutinize booking terms and refund policies, especially when engaging with intermediaries such as online travel agents. The association also recommends purchasing comprehensive travel insurance to cover potential losses from cancellations, delays, or unforeseen circumstances. With these developments, the landscape of consumer protection in Singapore appears to be evolving rapidly, reflecting both challenges and opportunities for improved oversight and support mechanisms.